Blog

New data matching programs initiated by Federal Government

11 December 2020

Over the first quarter of this financial year, the government has initiated two new data matching programs, using data that the ATO holds.

Data matching involves bringing together data from different sources and comparing it. For example, records from different agencies or businesses are compared, with the results possibly identifying people who are being paid benefits to which they may not be entitled, or people who may not be paying the right amount of tax.

Continue reading “New data matching programs initiated by Federal Government” →

ATO’s cyber safety checklist

11 December 2020

Scammers never seem to rest, with even the lastest JobKeeper iteration coming in for some scam treatment. In a new update the ATO reports that it is receiving reports of email scams about JobKeeper and backing business investment claims. “The fake emails say we’re investigating your claims. They ask you to provide valuable personal information, including copies of your driver’s licence and Medicare card.”

During this time of heightened scam activity, the ATO is encouraging individuals and businesses to:

Use multi-factor authentication where possible and don’t share your password with anyone
Run the latest software updates to ensure operating systems security is current
Secure your private wi-fi network with passwords (not the default password) and do not make financial transactions when using public wi-fi networks
Exercise caution when clicking on links and providing personal identifying information
Only access online government services via an independent search – not via emails or SMS
If in doubt, call the ATO on an independently sourced number to verify an interaction
Educate your staff on cyber safety and scams.

To report a data breach or scam visit ato.gov.au/onlinesecurity

What the “full expensing” write-off deduction means for business

11 December 2020

The Federal Budget measure of allowing businesses to fully write-off eligible assets is a boon to Australian businesses, even though the measure is temporary. Just to recap, businesses with aggregated annual turnover of less than $5 billion will be able to deduct the full cost of eligible capital assets acquired from 7:30pm AEDT on 6 October 2020 (Budget night) and first used or installed by 30 June 2022.

“Full expensing” in the year of first use will apply to new depreciable assets and the cost of improvements to existing eligible assets. For small- and medium-sized businesses (with aggregated annual turnover of less than $50 million), full expensing also applies to second-hand assets.

Continue reading “What the “full expensing” write-off deduction means for business” →

COVID-19 Lockdown

19 November 2020

During the current COVID-19 lockdown our office will be closed, however, we are still available should you need to contact us.

We will all be working from home and available via email and mobile phone and we can arrange a meeting by Zoom if required.

With the current lockdown there are a couple of key issues to consider:

JobKeeper 2.0 – the eligibility for JobKeeper for the January to March 2021 period is based on your income for the current quarter. Therefore should the lockdown result in your turnover for the quarter ended 31 December 2020 being 30% below the turnover for the December 2019 quarter you will be able to claim JobKeeper for your employees from January to March 2021.

Staff Wages – we have sought specialist advice for our clients from Strategic Employee Relations in relation to employer’s obligations to payment of staff who are unable to work due to the lockdown. Click on this link to view their Guidance Notes for your reference.

Should you require any assistance during this time, please do not hesitate to contact us via email at admin@nulli2advisory.com.au. However, most importantly, stay safe and hopefully, the lockdown only lasts for a short term.

Kind Regards
i2 Advisory

What can you do with your employees if you are required to temporarily shut your business as a result of a government lockdown?

19 November 2020

Employers may be faced with a situation where they are required to temporarily shut their business as a result of a State or Federal Government lockdown to combat COIVD-19.

An employer is highly likely to be able to “stand down” their employees “without pay” if a temporary lockdown does occur.

What is a stand down?

Employers have the ability to unilaterally stand down employees without pay if they cannot be usefully employed due to “a stoppage of work for any reason the employer cannot reasonably be held responsible” such as a Government lockdown.

A stand down means that an employer does not have to make an employee redundant but rather “pauses” their employment.

Contracts of employment, modern awards or enterprise agreements may contain different stand down provisions so it is important to check these instruments before implementing a stand down.

Process to implement a stand down

The below outlines a recommended process to implement a stand down:

Step 1: Check any contract of employment, applicable modern award or enterprise agreement for specific stand down provisions;

Step 2: Draft a stand down letter;

Step 3: Meet and provide an employee with the stand down letter. Explore ways to mitigate the impacts such as taking annual leave, annual leave at half pay, long service, banked TOIL or RDOs;

Step 4: Keep in touch with the employee on stand down to check on their welfare and bring them back to work when they can be usefully employed;

How long can a stand down last?

There is no time limit on a stand down and advice should be sought if a stand down becomes prolonged;

Further questions?
Every situation is different and the above is provided as general guidance. Please do not hesitate to contact Zev Costi on 0433 876 233 or at zev@nullstrategicemployeerelations.com.au if you have any questions.

Strategic Employee Relations Pty Ltd (ABN 70 625 206 680)

SA State Budget Summary 2020/21

16 November 2020

With many calling this budget as one that would define future generations, South Australian Treasurer Rob Lucas had a big task in drafting a budget to get South Australia’s economy back and firing with the aim to work towards stability in the jobs sector.

A year struck down by bushfires and the pandemic meant there were many areas requiring a significant boost and in some cases, prolonged assistance. For a Government that is often talking about curbing spending and pushing towards surplus, it was a very different budget indeed. So much so that Rob Lucas quipped during his budget speech ‘Now I know the joys of retail therapy….it makes you feel good when you’re spending other people’s money’.

Continue reading “SA State Budget Summary 2020/21” →

Individual or corporate trustee for your SMSF?

14 November 2020

When establishing a self managed superannuation fund (SMSF), one central decision to be made early on is if the trustee structure is to consist of individual trustees or a corporate trustee. Between these choices, you can have up to four individual trustees, or one company that acts as trustee (with that incorporated body having up to four directors).

There are differences between these two structures, which can matter depending on your circumstances and outlook on effective retirement savings. The decisions to be made when choosing between the two choices relate to member/trustee requirements, some costs, how assets are to be owned, possibly penalties, and ultimately any succession considerations.

Continue reading “Individual or corporate trustee for your SMSF?” →

The realities of insuring against cyber crime

17 October 2020

Think your business is too small or that your data and information isn’t important enough to be targeted by hackers? Think again.

Much of our communication, be it personal or businesses-related, has increasingly moved online in the last two decades, and continues to do so, especially in these recent times of COVID-19 with nearly everyone doing business exclusively online. Every day, thousands of pieces of information are transmitted via email, text, Messenger, WhatsApp, LinkedIn, social media and so on.

Yet while we’ve launched with a vengeance into the online world, whether by choice or of COVID-necessity, how many of us have kept pace with adequate cyber protections and insurances? Every day, we see individuals and businesses being targeted by cyber criminals. And it’s not just the big end of town in the crosshairs — plenty of smaller practices fall victim to cyber crime.

Cyber insurance can be regarded as business-critical insurance because statistics show that the likelihood of a claim occurring within a cyber insurance policy is now as high, if not higher, than making a claim against your business insurance or PI insurance.

Yet not all insurance policies are the same, and so businesses need to understand exactly what they are and are not covered for. At a minimum, a cyber policy should provide a 24/7 breach response service (including IT forensic services), breach response management, credit monitoring, public relations crisis management, civil and regulatory defence costs and penalties, cyber extortion costs, business interruption cover and cyber terrorism.

Continue reading “The realities of insuring against cyber crime” →

JobKeeper Extension – Am I eligible?

29 September 2020

The first round of the JobKeeper subsidy ended on 27 September 2020. For those that have been eligible to receive it, it has been a welcome boost to help businesses through what has been an uncertain time.

However – where to now?

With the extension of the JobKeeper rules passed into legislation (colloquially dubbed “JobKeeper 2.0”), businesses need to consider their eligibility under these new rules. This includes businesses who were previously ineligible that may now be eligible, as well as those businesses who have been receiving JobKeeper payments to date.

JobKeeper 2.0 vs JobKeeper 1.0

What remains the same?

Access for businesses, not for profits, eligible business participants and religious institutions/practitioners
Decline in turnover percentage thresholds (i.e. 15%, 30% or 50%)
The need to satisfy wage condition rules
Monthly reporting of turnover to the ATO
Integrity rules
The meaning of eligible employee and eligible business participant
The rule preventing more than one employer claiming in respect of the same employee
The enrolment process

What changes?

The test periods and method of calculation
Modifications to the ‘Decline in Turnover Test’
Tiered rates of payments
- 28 September 2020 to 3 January 2021 (Extension 1)
  - Tier 1 = $1,200 per fortnight
  - Tier 2 = $750 per fortnight
- 4 January 2021 to 28 March 2021 (Extension 2)
  - Tier 1 = $1,000 per fortnight
  - Tier 2 = $650 per fortnight
- ‘Tier 1’ applies to eligible employees who worked 80 or more hours in the 4 weeks of the pay periods before 1 March 2020 or 1 July 2020 OR eligible business participants who worked 80 or more hours in the 4 weeks of the pay periods before 1 March 2020
- ‘Tier 2’ applies to all other eligible employees and eligible business participants

What do I need to do?

Assess eligibility – are you still (or now) eligible? You will need to enrol if you are eligible.
Does your business meet the relevant decline in turnover test for the September Quarter?
Determine eligible employees and the payment ‘Tier level’ they are eligible for based on their reference period
You have until 31 October 2020 to meet the wage condition (i.e. top-up employees if required) for fortnights ending in October for eligible employees – see Fig 1
If eligible, you will need to ensure the monthly declarations are lodged with the ATO before the 14^th day after the end of each month to receive your payment

What do I need to do in my payroll software?

Identify the eligible employees and enrol them as JobKeeper participants (only if new to the JobKeeper scheme)
Assign a Tier 1 or Tier 2 payment rate to each eligible employee
For more guidance click your accounting software link below
For those businesses no longer eligible for JobKeeper payments or for individual employees which may no longer be eligible under the JobKeeper extension, you will need to process this in your relevant software by ‘stopping’ JobKeeper payments
Without doing the above as it applies, Single Touch Payroll filing may be rejected

Fig 1 – JobKeeper Fortnight Calendar

We are happy to assist with any of the above from assessing your eligibility as an employer and identifying the eligible employees and/or business participants that you can receive payments for.

If we can assist with the above or any other matters, please do not hesitate to contact us at admin@nulli2advisory.com.au or 08 8132 6400.
DISCLAIMER: This summary is for general use only and should not be relied upon or taken to constitute advice. Further, it is based on available information which is subject to change.

COVID-19 and residential rental property claims

30 August 2020

Many residential rental property owners have had their rental income affected by COVID-19. As a result of this income year not being business as usual, the ATO has provided answers to some typical scenarios that may crop up in this area for tax time.

Q: If tenants are not paying their full rent of have temporarily stopped paying rent as their income has been affected due to COVID-19, can a property owner still claim deductions on their rental property expenses?

A: Yes. If tenants are not meeting their payment obligations under the lease agreement due to COVID-19 and you continue to incur normal expenses on your property, then you will still be able to claim these expenses in your tax return.

Continue reading “COVID-19 and residential rental property claims” →